Q: As devastating as the loss to Baltimore was to the Broncos, I can't help but remember how painful the loss to Jacksonville was, and that was followed by two Super Bowl-winning seasons. My question is what roster changes took place between the loss to Jacksonville and the first Super Bowl title the next season? And how do those roster changes compare to what may happen to this year's team?

A: Ty, when you look at what the Broncos did between the 1996 and 1997 seasons, it's key to remember it was a different time in the financial landscape of the league.

The NFL's salary cap was still in the early years — 1994 was the first full season of free agency and the salary cap. Many teams believed they could spend more in free agency because they didn't always yet understand the impact of those decisions down the road.

The Broncos did tweak their lineup in between the '96 and '97 seasons, and they did it for the most part in free agency. They were one of the most active teams in that offseason in their pursuit of veteran players deep into their careers.

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They traded a second-round pick to the Ravens for tackle Tony Jones and then signed defensive end Neil Smith, cornerback/returner Darrien Gordon, backup quarterback Bubby Brister and defensive tackle Keith Traylor in free agency.

Jones, Smith and Gordon were starters in 1997, with Jones and Gordon having started 16 games and Smith 13. The other major difference was wide receiver Rod Smith was basically the Broncos' No. 3 receiver in the 1996 season, finishing with 16 catches for 237 yards and two touchdowns.

And in '97, Smith was a starter for the first time. He finished the '97 season with 70 receptions for 1,180 yards and 12 touchdowns.

It was the first of nine career seasons with at least 70 receptions and the first of eight career seasons with at least 1,000 yards. The 12 receiving touchdowns in '97 were also a single-season best for Smith.

So, in terms of player development, one of the biggest moves the Broncos made between '96 and '97 was simply to elevate one of their own players.

It is also worth noting that the Broncos' plunge into free agency came with a price. They were penalized twice regarding deferred compensation and the salary cap in the years following their back-to-back title run.

In December 2001, the Broncos were fined $968,000 and lost a third-round pick in the 2002 draft for violations reportedly surrounding $29 million in deferred payments to quarterback John Elway and running back Terrell Davis. And in 2004 they were fined $950,000 and lost a third-round pick in the '05 draft for other salary-cap violations between 1996 and 1998.

In '04, the penalties were agreed upon by the NFL, the NFLPA and the Broncos.

Broncos owner Pat Bowlen always maintained the team gained no competitive advantage from the violations. At the time, he said:

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"The non-disclosures brought to my attention by the National Football League took place in the mid-1990s. We cooperated with the NFL throughout their examination of the situation. While I regret that the circumstances took place, it is important to note that there was no competitive advantage gained by our organization, nor was there any involvement or responsibility by anyone who is currently with the Broncos in any capacity. We accept our penalty, will pay our fine as directed and from this point on put the issue behind us."

At the time, many in the league said the violations were a result of the Broncos dealing with cash-flow issues on the front end of their new stadium project — now Sports Authority Field at Mile High that opened in 2001 — rather than enabling them to add players to the roster.

The league's current salary-cap structure demands teams bolster through the draft far more than many teams thought necessary in the early years of the salary cap when free agency was thought of as some kind of fix-it option.

The Broncos will be able to sign free agents in this offseason, but if their intention is to stay competitive over the long haul, they have to resist the temptation of diving into free agency at the expense of their draft efforts.

That's a short-term repair that has consistently been proven not to work in the current climate. Free agency is a tool, but Elway has said, "The draft has to be at our core, both financially and from a football perspective."

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